Positive Outlook on Olema Pharmaceuticals’ Palazestrant Driven by Promising Trial Data and Market Potential

Emily Bodnar, an analyst from H.C. Wainwright, maintained the Buy rating on Olema Pharmaceuticals. The associated price target was raised to $36.00.

Emily Bodnar’s rating is based on the promising potential of Olema Pharmaceuticals’ palazestrant in the treatment of ER+/HER2- breast cancer. The recent positive interim data from Roche’s lidERA trial, which evaluated giredestrant, another oral SERD, has increased confidence in the efficacy of palazestrant. The lidERA trial demonstrated statistically significant benefits in invasive disease-free survival, suggesting that oral SERDs could play a crucial role in breast cancer treatment.
Given the success of giredestrant, Bodnar anticipates that Olema’s ongoing Phase 3 trial of palazestrant in combination with ribociclib for 1L metastatic breast cancer could yield similarly positive results. This trial could potentially replace the current AI backbone with an oral SERD, offering a significant market opportunity, especially in the adjuvant setting where patients may remain on therapy for extended periods. The potential for palazestrant to expand into the adjuvant setting further supports the Buy rating, as it indicates a substantial upside in market opportunity.

In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $32.00 price target.

Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OLMA in relation to earlier this year.